Energy Efficiency of Electricity Transmission and Distribution Systems

When discussing the green energy transition, the primary, and often sole, focus is on replacing traditional fossil fuel generation with renewable generation. However, perhaps the most critical issue today is the state of our grids. The challenge of developing electrical networks is a significant hurdle on the path to greater electrification – a key means of substituting polluting fuels – and to integrating a larger volume and capacity of renewable generation.

Indeed, the adequate and intensive development of electrical grids today represents the primary challenge of the energy transition.

According to the International Energy Agency’s report “Electricity Grids and Secure Energy Transitions,” to achieve national energy and climate goals worldwide, global electricity consumption must grow 20% faster in the next decade than in the previous one. Electricity demand needs to grow even faster on the global path to achieving climate neutrality by 2050, consistent with the aspiration to limit the global temperature increase to 1.5 °C. Developed electricity grids are crucial for enabling such growth levels.

Achieving national targets also means building or refurbishing a total of over 80 million kilometers of grids by 2040, equivalent to the entire existing global electricity grid.

Electrical grids are essential for decarbonizing electricity supply and efficiently integrating renewable sources. Accelerating the deployment of renewable energy requires modernizing electricity grids and establishing new transmission corridors to connect renewable resources, such as solar photovoltaic projects in deserts and offshore wind turbines at sea, which are located far from demand centers like cities and industrial areas.

However, it’s not just the quantity of grids that matters. Perhaps an even more important question is the quality of the grids and the associated efficiency of energy transportation. In other words, the energy efficiency of electricity transmission and distribution.

And despite the fact that in Ukraine, discussions about energy efficiency rarely touch upon the energy efficiency of electricity transportation, this very issue is extremely relevant given the additional challenges brought by the war and Russia’s terrorism. Both direct strikes on infrastructure and shifts in economic geography, and consequently consumption patterns, pose extraordinary tasks for Ukraine’s electricity grids.

The issue of energy efficiency takes on particular significance in light of the preparation of the National Energy and Climate Plan (NECP) up to 2030. Work on implementing the NECP 2030 should significantly increase attention to energy efficiency issues, not only in declarations and general traditional approaches, but also draw additional focus to energy efficiency in the energy sector as a key means of decarbonization and achieving climate neutrality.

Key measures to enhance energy efficiency in electrical grids include investments in energy-efficient equipment, the use of smart grid and automation technologies, demand response and demand-side management programs, energy storage systems, and the quality integration of renewable energy sources. Furthermore, quality infrastructure maintenance and ensuring qualified personnel (from engineering to managerial levels) are critically important. Voltage optimization and power factor correction also significantly contribute to the overall energy efficiency of electrical grids.

Investments in Energy-Efficient Equipment

This might seem like an obvious solution, but in practice, it’s not so simple. Choosing the most energy-efficient equipment involves assessing investment attractiveness and the limitations imposed by state policy. The latter is implemented through technical regulation, the instruments of which are technical regulations (standards).

Ukraine has committed to implementing modern and promising approaches to technical regulation, which entails sufficiently high ecodesign requirements for equipment such as transformers. Considering that the life cycle of investments in electrical grid equipment can be quite long, a 1% difference in efficiency can more than significantly impact the volume of energy losses. Technical regulations allow for regulatory pressure on decision-making entities.

Assessing investment attractiveness is somewhat more complex, as it requires considering not only the volume of losses due to less energy-efficient equipment but also the cost of such losses through the price of electricity in the medium and long term. It is clear that under conditions of an efficient market and increased regulatory pressure to achieve decarbonization goals, investing in the most efficient equipment will yield the greatest long-term results. In Ukrainian realities, considering the availability and cost of financial resources and non-market pricing, the advantages of such equipment in the medium term may not be so obvious.

Introduction and Development of Smart Grid Technologies and Network Automation

We owe the very emergence of smart grid technologies to the efficiency gains that these technologies can provide. Smart Grid technologies ensure better communication between network components, enhancing network reliability and efficiency. Particular attention should be paid to the implementation of Advanced Metering Infrastructure (AMI) and smart meters, which allow for real-time monitoring of electricity consumption.

In Ukraine, the “Concept for the Implementation of Smart Grids until 2035” was developed and approved by the Cabinet of Ministers in October 2022. A sufficiently comprehensive and detailed Action Plan until 2035 was also approved for the Concept. The status of implementation of the relevant Resolution and Plan raises questions, and control over such implementation must be significantly strengthened.

Despite the trendiness of the “smart grids” concept, classic automation also remains an important focus. Automation technologies enhance the grid’s ability to respond quickly to changing conditions and faults. Automated control systems can optimize power flow, minimize losses, and reduce downtime, thereby increasing the energy efficiency of grid operations.

Quality Integration of Renewable Energy Sources

Integrating renewable energy sources, such as solar and wind power, into the grid diversifies the energy mix and reduces dependence on traditional, less efficient sources. Advanced control systems are used to manage the variability and intermittency associated with renewable energy generation.

Demand Response (DR) and Demand-Side Management (DSM) Systems

These systems allow for an operational response to load balancing and encourage consumers to adjust their electricity consumption according to grid conditions or price signals. By shifting demand from peak periods, demand response helps optimize grid operation and reduce the need for additional infrastructure. A strategic approach to developing demand-side management systems allows for a systematic approach not only at the operational level but also in the medium and long term.

Energy Storage Systems (Energy Storage Installations)

The integration of energy storage, such as batteries, helps store surplus energy during periods of low demand and release it during peak demand, enhancing overall grid stability and efficiency. In February 2022, a week before Russia’s full-scale invasion, the Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Amendments to Certain Laws of Ukraine Regarding the Development of Energy Storage Installations.” The law came into force in June 2022, but today it is difficult to speak of any significant progress in the development of energy storage systems and installations. Without such progress, the effective operation of electricity grids under current conditions is questionable.

Voltage Optimization and Power Factor Correction

Optimizing voltage levels in the grid reduces energy losses during transmission and distribution. This involves regulating voltage levels to meet consumer needs without exceeding necessary limits. Power factor correction helps minimize reactive power, reducing energy losses and improving overall grid efficiency.

Infrastructure Upgrades and Maintenance

Regular maintenance and upgrades of distribution infrastructure, such as transformers and power lines, help prevent energy losses due to aging and deteriorating equipment. For Ukraine, this issue is particularly acute due to many years of underfunding and the need for fundamental tariff reform.

Ensuring Qualified Personnel

Directly related to the previous point, but also of special and significant importance in its own right, is the issue of personnel. Ensuring an adequate supply of qualified personnel and maintaining high staff quality is an extremely important issue, whose global and systemic impact on the effective operation of electricity transmission and distribution systems should not be overlooked. This concerns not only engineering staff but also managerial personnel, as the quality of management decisions significantly impacts the overall quality and operational efficiency of energy companies.

The listed areas where efforts need to be concentrated are not exhaustive and require further elaboration and deepening. It is important to realize that only through heightened attention and a systemic, comprehensive combination of measures and approaches can Ukraine’s electricity grids become more resilient and energy-efficient, contributing to a sustainable and reliable energy infrastructure. An energy infrastructure without which neither a successful energy transition nor sustainable economic development of the state is, in principle, possible.